Towing Issues: Car was damaged during repo and they admitted it, tow truck driver, blue book value

Question
QUESTION: I had 2 vehicles repo-ed. The loan was on my truck but the bank held the title for collateral(even though the blue book value of the truck was over the loan amount) on my project car (older Camero with a $3,000.00 racing engine in it) My Camero was damaged during the repo.  When I went to pick up my truck and Camero (paid the loan completely off), I noticed body damage to just my Camero and that the engine had been pulled and put back in (the engine block had been repainted and parts where missing). My pick up was missing it's license plates. I confronted the manager of the tow service and she then admitted to me that my Camero fell off the tow truck during repo and that they would take care of the damages.  When I asked about the Camero's engine being tampered with and license plates missing off my truck, she said she had no idea what had happened. I asked her if they did not lock their lot (6' chain link with barb wire on top, her office is right by the gate). She said they cannot watch the lot all the time (small tow truck business, small lot). There was another guy there which whom she said rented the front of the tow truck shop for his car repair business.  He admitted to me that his guys removed my Camero's engine and was stripping it down. He said he told them to put the engine back in the Camero. Then told me he had a guy working for him who probably stole the license plates off my truck. I got them to sign a piece of paper stating that the tow company would pay for damages to my Camero when it fell off the tow truck and stating the guy who rented the shop would pay for damages to the engine (he also signed the paper). All said and done, they now refuse payment.  The owner of the tow truck service sent me a letter stating they would not support a bill for ground-up restoration (I am only asking for the damages they caused and I have their statment saying they caused the damages- (their tow truck driver towed my Camero to body shops to get the esitmates)(this is the same driver who repo-ed my Camero to the wrong repo lot, he told us that he knew the Camero was not damaged when he picked it up)(my Camero was then towed a second time by a different driver to a different lot(same company) and that's when it fell off the tow truck) Their letter stated that car book value is only $850.00 and they will pay that, but I have to sign the title over so they can get a scrap price of $100.00(damages to just the body was $2,500.00)(not including damages to the $3,000.00 racing engine). After 4 months I finally got them to give me their insurance companies name. The guy who said he would pay for the engine is now long gone and never did have insurance. All during this time I had been communicating with my banker who authorized the repo. My banker told me that he had been communicating with the tow truck service and they told him they would take care of it. My questions are "If the tow truck company insurance company only gives me book value, can I sue the bank and the repo company for the difference of cost of repair?" "Can I sue them for engine damages being the car was under their care during this time of repo?"
Yes, I called the cops, but they said they could only file a report on the missing license plates, which they did. This has been a mess for the last 4 months - all I want to do is get my car back to the condition it was in before they repo-ed it.  This happened in Missouri.

ANSWER: You definitely have a case and it is good that you have something in writing to back up the fact that they admitted it. As for them wanting to pay you for the book value, that is how insurance companies think. However, you are entitled to be compensated for damages back to the original state of the vehicle. In some states they try to stick to the book value for vehicles. I have been arguing with State Farm for over a year about an accident involving a wrecker I had that was totaled. You may have to involve an attorney to protect your interest in this case. You will probably have to file suit against everyone involved including the finance company, towing company, driver and mechanic shop. The good thing is that they will have to pay the cost of your attorney and court cost if you win. There are a few questions you need to adress.
How long were the vehicles stored before you went to redeem them?
Was the loan actually in default when they repossessed the vehicles?
What damages were sustained and how?
How was the vehicle towed? Roll back or wrecker?
When the vehicle was towed, who towed it to the wrong lot?
How can you document the vehicle fell off the tow truck?
Was a condition report completed on your vehicle after the repossession? Can you get a copy?
Who was the finance company?
Who is the insurance company?
There may be more, but just let me know.
As for the tags, most tags are removed and placed with personal property. Did they remove your personal property and list it on a property list?
Let me know what you can and I will be glad to help. These issues are my specialty as I actually wrote a book about the repossession business that was published in 1997.

---------- FOLLOW-UP ----------

QUESTION: To answer your questions,
1. The vehicles were stored a little over a week before I went to get them.
2. Yes, the loan was in default.
3. The Camero had both front end damage and rear end damage. They(tow truck company) told us the driver said he took lug nuts off the front wheel to put on the back wheel. Why I do not know, so when he was towing it from the back the front wheel fell off causing front and rear damage. The vehicle is not driveable now.
4. The vehicle was towed first time on a flatbed truck, the second time pulled behind a wrecker truck.
5. The tow truck company driver towed the vehicle to the wrong lot.
6. I can document the vehicle damages were caused by their driver with a document they drew up and signed, stating "Three estimates will be obtained for damages to drivers side of vehicle and wing on the back vehicle. That was damaged by our driver, (his name)." This was written and  signed by the manager in the office that day.  It also stated "Charges that incurred do to the damages to the engine will be covered through the insurance of (his name, the guy who rented the front of the tow trucks building)  -- But I want to note here that they are admitting to damages to the engine while it was in the possession of the Tow Truck Co. on their repossession lot).
7. The Tow truck company mentioned a condition report but never came up with one.  They did not think a report was filed where the car arrived at the wrong lot. I took pictures at the repossession lot and again when I got the car home.
8. The finance company was my small hometown bank.
9. The tow truck company insurance is some off the wall name I never heard of - Garage Services something?  
10. The tags were never removed they were stolen and I had the cops write up a stolen tag report, as I said before the cops would not write a report on damages to the car.  The guy who rented the front of the shop admitted that his guy he had working for him probably stole the tags because he was a known thief. Quote, unquote. Personal property was removed here at my home before they took the vehicles.
I also have that letter from the owner of the towing company, wanting to settle the damages to the Camero for used car guide value of only $850 (instead of the $2,445.48 which the estimates came to).  You got to realize I was their, plus my mom and dad, when I went to pick up the car and found the damages - so I have 2 witness that seen the damages and know what condition the car was in before it was repossessed and they also heard the manager of the tow truck service admit the cars front wheel fell off because the driver removed some of the lug nuts from the front wheel and placed them on the back wheel, don't ask me why, especially when he was towing it from the backend of the car. But if you ever seen this Rinky Dink outfit, they call a towing service, you know why!

Answer
A letter, usually registered mail is your best option to begin with. Send the letter with your offer to settle and be sure to include that if you are forced to pursue it you will seek additional amounts for legal fees, inconvenience, etc...etc. If you send the letter certified it makes a better impression and if you include a cc at the bottom and send copies to the Better Business Bureau and any local towing association (or TRAA Towing and Recovery Assoc of America). If you talk to an attorney and he will agree to it cc him on it also. Just explain that you want to try to resolve it without having to involve an attorney if possible.